As a taxpayer, you have the right to appeal the value set by the appraisal district on your commercial property. Thankfully, the team at Paramount Property Analysts is here to help ensure the methods used by the district to value your property are fair and accurate! Our property tax consulting division’s extensive valuation experience and high success rate can help you effectively reduce your commercial property taxes.
Commercial Property Taxes
Commercial property taxes are assessed on any real estate that generates revenue for the owner. The tax amount is based on the assessed value of the property. This includes the land and any structures built on the land. This assessment is typically conducted by appraisers employed or contracted by the local or municipal government tax office.
In Texas, the state government does not collect property tax. Therefore local governments set the tax rate and collect property taxes. The money collected from these taxes is used to provide local services. This includes operating public schools, maintaining streets, and providing police and fire protection. Although the way residential and commercial property tax revenues are used is similar, there are vital differences in the appraisal processes used to determine the tax amounts.
Residential vs. Commercial Property Taxes
To assess properties for tax purposes it is important to understand the different ways commercial and residential property values are determined. Residential properties are used strictly for residential purposes, such as single-family dwellings, they are evaluated differently than commercial properties.
When evaluating a commercial property for taxable value, appraisers use the “highest and best” tactic. In other words, the assessment of the property is based upon its highest potential value, regardless of how the property is currently being used. To determine the “highest and best” use, the appraiser considers what uses are physically possible, financially feasible, most profitable, and legally permissible. While using this tactic, appraisers may also consider the actual income currently derived from the property.
Here’s How We Can Help
At Paramount Property Analysts, we pride ourselves in our first-rate property tax consulting services that save our clients’ money. From informal hearings to judicial reviews, our team is equipped to handle the entire appeals process. With six locations throughout Texas, we can help navigate the process of dealing with the local government that oversees your property’s taxes. Contact us today!
